Investing for a clean, electric and efficient energy future

The world’s remaining carbon budget is shrinking fast. We are only at the beginning of our global transition to net-zero emissions by 2050, and whilst keeping this target is not impossible, it will require radical change. Economies must rapidly embrace clean, electric and efficient energy usage in order to decarbonise.

By focusing on sustainable companies providing transformative technologies and solutions to the global energy sector, the Polar Capital Sustainable Thematic Equity Team seek long-term opportunities through exposure to the entirety of the smart energy value chain.

The Polar Capital Sustainable Thematic Equity Team have identified four key investment opportunities, covering the entire smart energy value chain.Source: Polar Capital estimates, www.icos-cp.eu/science-and-impact/global-carbon-budget/2020 for historical figures (until 2020). The information is at the date hereofand is subject to change, without notice, at the discretion of Polar Capital, who does not undertake to revise or update this information in any way. All opinions and estimates constitute the best judgment of Polar Capital as of the date hereof, but are subject to change without notice, and do not necessarily represent the views of Polar Capital. 1975200020252050Energy related CO2 emissions (Gt/year)1.5°C4.5°C6050403020100Global warming: are we on track to curb emissions? Historical emissionsBusiness as usual scenario1.5 degree scenarioSustainable Thematic Equity Team's scenarioSustainable Thematic Equity Team projectionVSBusiness as usual scenario indicates a significant increase in global temperatures by 2100The increase inglobal temperatureswhich the ParisAgreement aimsto limit us toWhat will it take to come close to decarbonisation by 2050?16xElectricitydemand to increase by of total power generated through renewables90%Transportation & building sectorget electrifiedof all electricity demand growth to come from new demand driversCheap storagesolutions throughbatteries &green H2Efficientheat-powercogenerationthrough green hydrogen EVs and big data as strongelectricity demand drivers increase of solar and windpower capacity65%Source: Polar Capital estimates, www.icos-cp.eu/science-and-impact/global-carbon-budget/2020 for historical figures (until 2020). The information is at the datehereof and is subject to change, without notice, at the discretion of Polar Capital, who does not undertake to revise or update this information in any way. ElectricCleanEfficientSolar and windbecome cheapest form of power2.5xSource: Polar Capital estimates, www.icos-cp.eu/science-and-impact/global-carbon-budget/2020 for historical figures (until 2020). The information is at the datehereof and is subject to change, without notice, at the discretion of Polar Capital, who does not undertake to revise or update this information in any way. How can investors embrace a smart energy future?reduction in energy loss achieved by the next generation of semiconductor materials70%Climate-proofingof the building sectorEU Green Dealaims to install40GW of hydrogen electrolysers by2030Clean Power Generation Solar supply chainWind supply chainRenewable power producers SmartgridequipmentHydrogen infrastructureequipment Electricgrid&hydrogendistributionEnergyTransmission&Distribution Power conversionEnergy storageEnergy Conversion & Storage BuildingsIndustrial processesTransportationBig DataEnergy Efficiency1234We believe that limiting global warming to the Paris Agreement’s target of 1.5°C will be missed.Smart integration will be key to achieving cost-effective decarbonisation.

Investing towards a decarbonised energy future

Watch Thiemo Lang, Senior Portfolio Manager of the Polar Capital Smart Energy Fund, discuss how technology has transformed the smart energy sector over recent years.

With an outstanding track record spanning nearly 15 years in this space, Thiemo reflects on how his focus as an investor in this sector has evolved alongside this, as the opportunity set has become much broader.

Faced with this growing investment universe, Thiemo also explains how the Fund aims to benefit from diversified exposure to the entirety of the smart energy value chain, through the four key investment clusters that the Polar Capital Sustainable Thematic Equity team has identified.

Important Information: This document is provided for the sole use of the intended recipient and is not a financial promotion. Smart Energy Fund (the “Fund”) is a sub-fund of Polar Capital Funds plc which is authorised by the Central Bank of Ireland as an Undertaking for Collective Investment in Transferable Securities under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (S.I. 352/2011), as amended. This document has been prepared by Polar Capital for informational purposes only for the sole use of the intended recipient. It does not seek to make any recommendation to buy or sell any particular security (including shares in the Fund) or to adopt any specific investment strategy. This document does not contain information material to an investor’s decision to invest in the Fund. Shares in the Fund are offered only on the basis of information contained in the prospectus, key investor information document (“KIID”), and the latest annual audited accounts. Copies are available free of charge from Polar Capital at the below address or on www.polarcapital.co.uk. The KIID is available in Danish, Dutch, English, French, German, Italian, Norwegian, Spanish and Swedish. The prospectus is available in English.

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